Speaking to reporters in the Oval Office Thursday afternoon, President Donald Trump signed an executive order imposing tariffs on all foreign countries that implement tariffs on American goods.
"On trade I have decided for purposes of fairness that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America we will charge them. No more, no less. In other words they charge us a tax or tariff and we charge them the exact same charge or tariff. It's very simple," Trump said, joined by incoming Commerce Secretary Howard Lutnik. “If you build your product in the United States, there are no tariffs.”
Trump announces reciprocal tariffs: the U.S. will impose the same rates that other countries charge on American goods. pic.twitter.com/q6E4P7SqiM
— Open Source Intel (@Osint613) February 13, 2025
"For many years, the U.S. has been treated unfairly by other Countries, both friend and foe. This System will immediately bring Fairness and Prosperity back into the previously complex and unfair System of Trade. America has helped many Countries throughout the years, at great financial cost. It is now time that these Countries remember this, and treat us fairly – A LEVEL PLAYING FIELD FOR AMERICAN WORKERS. I have instructed my Secretary of State, Secretary of Commerce, Secretary of the Treasury, and United States Trade Representative (USTR) to do all work necessary to deliver RECIPROCITY to our System of Trade!" Trump added on Truth Social.
Trump plans to use tariffs as a way to leverage pressure on countries to change their own policies on issues like illegal immigration, but also as a way to eventually get rid of the income tax on Americans.
“Prices could go up short term, but prices will also go down," Trump said. “Long-term it’s going to make our country a fortune.”
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From the order:
The United States has one of the most open economies and has among the lowest average weighted tariff rates in the world. The United States imposes fewer barriers to imports than other major world economies, including those with similar political and economic systems. For many years, the United States has been treated unfairly by trading partners, both friend and foe. This lack of reciprocity is one source of our country's large and persistent annual trade deficit in goods -- closed markets abroad reduce United States exports and open markets at home result in significant imports.
Our workers and industries bear the brunt of unfair practices and limited access to foreign markets. As noted in the Presidential Memorandum of January 20, 2025 (America First Trade Policy Memorandum), this situation is untenable. The trade deficit of the United States threatens our economic and national security, has hollowed out our industrial base, has reduced our overall national competitiveness, and has made our Nation dependent on other countries to meet our key security needs. By making trade more reciprocal and balanced, we can reduce the trade deficit; grow the United States economy; and improve our trade relationships with trading partners to the benefit of American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.
National Economic Council Director Kevin Hassett previewed Trump's move Thursday morning and detailed the numbers.
National Economic Council Director Kevin Hassett on tariffs: Last year, we mailed foreign governments $370 billion in taxes, and those taxes are being paid for by U.S. citizens... Is it good for U.S. citizens to mail $370 billion to them, while they're sending $57 billion to us? pic.twitter.com/FWuJtfqN1P
— Rapid Response 47 (@RapidResponse47) February 13, 2025
Since taking office on January 20 Trump has implemented a number of different tariffs and issued threats to Mexico and Canada should they continue their failure to stop drug and human trafficking into the U.S. Earlier this week Trump instituted a 25 percent tariff on steel imports, which is being praised by the domestic industry.
“The steel industry in America faces serious threats from foreign actors that seek to destroy domestic production. China and other countries routinely violate trade laws and dump heavily subsidized steel products into the United States at the expense of American workers," Steel Manufacturers Association President Philip Bell said about the move. "By imposing a 25 percent tariff on steel imports, President Trump is leveling the playing field for American manufacturers and workers and helping America defeat direct threats to our jobs."
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